Richmond, VA – March 12, 2019 – Medalist Diversified REIT, Inc. (NASDAQ: MDRR) (the “Company” or “Medalist”),
a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add
commercial real estate in the Southeast region of the U.S., today announced financial results for the fiscal year
ended December 31, 2018.

2018 Year-End Highlights
• FY 2018 revenue of $6.6 million, up from $1.7 million in the prior year.
• FY 2018 net loss of $3.0 million, up from $1.0 million in the prior year.
• Basic and Diluted EPS of ($1.39) for FY 2018, compared with ($1.28) in the prior year.
• FFO of ($0.38); AFFO of ($0.40).
• Completed an initial public offering on November 30, 2018, raising net proceeds of $1.8 million.
• Paid a regular quarterly dividend of $0.175 on December 14, 2018.
Medalist CEO Tim Messier commented, “2018 was a big year for us as we completed our initial public offering and
began trading on the Nasdaq Capital Market. We look forward to building on this success by expanding our property
portfolio to support our dividend going forward. We have a robust pipeline of attractive properties under review
and look forward to a productive 2019.”
The following table summarizes the Company’s property portfolio at December 31, 2018. Please refer to the
Company’s annual report on Form 10-K for further details on the property portfolio.
Property City Type Occupancy

Average Daily
Rate Ownership %
Franklin Square Gastonia, NC Retail 92.5% -- 100%
Hampton Inn Greensboro, NC Lodging — $117.88 64%
Hanover Square North Mechanicsville, VA Retail 96.7% -- 84%

Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, 2018 and 2017

2018 2017

ASSETS
Investment properties, net $45,323,497 $34,229,888
Cash 1,327,424 263,002
Rent and other receivables,
net of allowance of $15,194 and $38,628, as of
December 31, 2018 and 2017, respectively 108,478 122,017
Unbilled rent 259,216 51,784
Security deposits 71,022 54,119
Advance deposits 423,747 -
Escrows and operating property reserves 719,588 406,401
Property capital reserves 2,002,762 2,571,325
Intangible assets, net 2,585,834 2,259,904
Interest rate cap, at fair value 126,797 83,436
Prepaid expenses 158,687 50,802
Total Assets $53,107,052 $40,092,678

LIABILITIES
Accounts payable and accrued liabilities $ 826,336 $ 1,113,117
Intangible liabilities, net 439,726 300,724
Notes payable, short term - 1,500,000
Related party notes payable, short term - 677,538
Mortgages payable, net 33,236,397 24,419,268
Total Liabilities $34,502,459 $28,010,647

EQUITY
Preferred stock, $.01 par value, 250,000,000 shares authorized,
none issued and outstanding $ - $ -
Common stock, $.01 par value, 750,000,000 shares authorized,
2,321,582 and 1,148,002 shares issued and outstanding at
C December 31, 2018 and 2017, respectively 23,216 11,480
Additional paid-in capital 22,077,827 11,086,897
Offering costs (1,835,291) (912,060)
Accumulated deficit (5,229,760) (1,398,222)
Total Shareholders' Equity 15,035,992 8,788,095
Noncontrolling interests - Hampton Inn Property 2,009,031 2,211,345
Noncontrolling interests - Hanover Square Property 608,943 -
Noncontrolling interests - Operating Partnership 950,627 1,082,591
Total Equity $18,604,593 $12,082,031
Total Liabilities and Equity $53,107,052 $40,092,678

Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Statements of Operations
For the years ended December 31, 2018 and 2017

2018 2017

REVENUE
Retail center property revenues $2,372,666 $1,091,915
Retail center property tenant reimbursements 541,116 233,240
Hotel property room revenues 3,636,485 396,088
Hotel property other revenues 39,684 3,414
Total Revenue $6,589,951 $1,724,657

OPERATING EXPENSES
Retail center property operating expenses 976,468 602,970
Hotel property operating expenses 2,608,825 356,427
Share based compensation expenses 790,340 -
Legal, accounting and other professional fees 924,651 253,056
Corporate general and administrative expenses 119,679 54,185
Loss on impairment 191,578 -
Depreciation and amortization 2,043,323 743,146
Total Operating Expenses 7,654,864 2,009,784
Operating Loss (1,064,913) (285,127)
Interest expense 1,917,183 766,857
Net Loss from Operations (2,982,096) (1,051,984)
Other income 44,094 83,436
Net Loss before Income Taxes (2,938,002) (968,548)
Income tax expense 53,151 -
Net Loss (2,991,153) (968,548)
Less: Net loss attributable to Hampton Inn Property noncontrolling
interests (166,314) (50,095)
Less: Net loss attributable to Hanover Square Property noncontrolling
interests (15,177) -
Less: Net loss attributable to Operating Partnership noncontrolling
interests (66,339) (70,534)
Net Loss Attributable to Medalist Common Shareholders $(2,743,323) $(847,919)
Loss per share from operations - basic and diluted $(1.39) $(1.28)
Weighted-average number of shares - basic and diluted 1,967,980 661,363
Dividends declared per common share $0.525 $0.350

Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31, 2018 and 2017

2018 2017

CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(2,991,153) $(968,548)
Adjustments to reconcile consolidated net loss to
net cash used in operating activities
Depreciation 1,461,630 498,819
Amortization 581,693 244,327
Loan cost amortization 166,600 35,630
Amortization of tenant inducements 11,360 -
Increase in fair value - interest rate cap (43,361) (83,436)
Above (below) market lease amortization, net 136,370 97,037
Share-based compensation 790,340 -
Loss on impairment 191,578 -
Changes in assets and liabilities, net of acquisitions
Rent and other receivables, net 13,539 (122,017)
Unbilled rent (207,432) (51,784)
Prepaid expenses (107,885) (50,802)
Cash restricted for operating property security deposits (16,903) (54,119)
Cash restricted for escrows and operating property reserves (13,187) (406,401)
Accounts payable and accrued liabilities (423,955) 817,447
Net cash used in operating activities (450,766) (43,847)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment property acquisitions, net of cash acquired (4,312,209) (24,308,692)
Capital expenditures (986,470) (208,006)
Advance deposits (423,747) -
Decrease in property capital reserves 568,563 593,451
Net cash used in investing activities (5,153,863) (23,923,247)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends and distributions paid (1,213,840) (422,686)
Investment of noncontrolling interests 648,120 2,300,031
Issuance of notes payable and related party notes payable - 2,177,538
Repayment of notes payable and related party notes payable (2,177,538) -
Proceeds from mortgages payable, net 250,652 10,181,309
Repayment of mortgages payable (127,438) -
Proceeds from sales of common stock, net 9,289,095 9,993,822
Net cash provided by financing activities 6,669,051 24,230,014
INCREASE IN CASH AND CASH EQUIVALENTS 1,064,422 262,920
CASH AND CASH EQUIVALENTS, beginning of period 263,002 82
CASH AND CASH EQUIVALENTS, end of period $1,327,424 $263,002

Supplemental Disclosures and Non-Cash Activities:
Other cash transactions:
Interest paid $1,850,615 $585,179
Non-cash transactions:
Mortgage payable assumed for acquisition of Hanover Square Property $8,527,315 $ -
Mortgage payable assumed for acquisition of Franklin Square Property - 14,275,000
Noncontrolling interests resulting from issuance of operating partnership units - 1,175,000
Issuance of common stock related to Hampton Inn Property acquisition - 300,000
Warrants issued 49,890 -
Capital expenditures recorded but not yet paid 137,174 -

Non-GAAP Financial Measures
We use Funds from operations (“FFO”), a non-GAAP measure, as an alternative measure of our operating
performance, specifically as it relates to results of operations and liquidity. We compute FFO in accordance with
standards established by the Board of Governors of the National Association of Real Estate Investment Trusts
(“NAREIT”) in its March 1995 White Paper (as amended in November 1999, April 2002 and December 2018). As
defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses)
from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan
origination costs and above and below market leases) and after adjustments for unconsolidated partnerships and
joint ventures. Most industry analysts and equity REITs, including us, consider FFO to be an appropriate
supplemental measure of operating performance because, by excluding gains or losses on dispositions and
excluding depreciation, FFO is a helpful tool that can assist in the comparison of the operating performance of a
company’s real estate between periods, or as compared to different companies. Management uses FFO as a
supplemental measure to conduct and evaluate our business because there are certain limitations associated with
using GAAP net income alone as the primary measure of our operating performance. Historical cost accounting for
real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes
predictably over time, while historically real estate values have risen or fallen with market conditions. Accordingly,
we believe FFO provides a valuable alternative measurement tool to GAAP when presenting our operating results.
NAREIT’s December 2018 White Paper states, “FFO of a REIT includes the FFO of all consolidated properties,
including consolidated, partially owned affiliates”. Additionally, since the adjustments to GAAP net income, such
as depreciation and amortization, used in the reconciliation of net income (loss) to determine FFO are not allocated
between shareholders and noncontrolling interests (i.e. 100% of depreciation and amortization are “added back”
without reduction to reflect the noncontrolling owners’ interest in such items), the Company believes that the
appropriate starting point for the calculation is the net income (loss) before allocation to noncontrolling
interests. This allows the Company to use FFO as a tool to measure the overall performance of its investment
properties, as a whole, not just the portion of the investment properties controlled by Company shareholders.
Below is our company’s FFO, which is a non-GAAP measurement, for the year ended December 31, 2018:
Net income (loss) $ (2,991,153)
Depreciation of tangible real property assets (1) 1,243,385
Depreciation of tenant improvements (2) 193,170
Amortization of leasing commissions (3) 25,075
Amortization of tenant inducements (4) 11,360
Amortization of intangible assets (5) 581,693
Loss on impairment (6) 191,578
Funds from operations $ (744,892)
(1) Depreciation expense for buildings, site improvements and furniture and fixtures.
(2) Depreciation of tenant improvements, including those acquired as part of the purchase of the Franklin Square
Property and Hanover Square North and those constructed during the years ended December 31, 2018 and 2017.
(3) Amortization of leasing commissions paid for the Franklin Square Property and Hanover Square North during the
years ended December 31, 2018 and 2017.
(4) Amortization of tenant inducements paid for the Franklin Square Property during the year ended December 31, 2018.
(5) Amortization of intangible assets acquired as part of the purchase of the Franklin Square Property and Hanover
Square North, including leasing commissions, leases in place and legal and marketing costs.
(6) NAREIT’s December 2018 White Paper provides guidance for the treatment of impairment write-downs.
Specifically, “To the extent there is an impairment write-down of depreciable real estate ... related to a REIT’s main
business, the write-down is excluded from FFO (i.e., adjusted from net income in calculating FFO).”
NAREIT’s December 2018 White Paper encourages companies reporting FFO to “make supplemental disclosure of
all material non-cash revenues and expenses affecting their results for each period.” We believe that the
computation of FFO in accordance with NAREIT’s definition includes certain items that are not indicative of the
results provided by our operating portfolio and affect the comparability of our period-over-period performance.

These items include non-cash items such as amortization of loans and above and below market leases, unbilled rent
arising from applying straight line rent revenue recognition and share-based compensation expenses. Additionally,
the impact of capital expenditures, including tenant improvement and leasing commissions, net of reimbursements
of such expenditures by property escrow funds, is included in our calculation of AFFO. Therefore, in addition to
FFO, management uses Adjusted FFO (“AFFO”), which we define to exclude such items. Management believes that
these adjustments are appropriate in determining AFFO as their exclusion is not indicative of the operating
performance of our assets. In addition, we believe that AFFO is a useful supplemental measure for the investing
community to use in comparing us to other REITs as many REITs provide some form of adjusted or modified FFO.
However, there can be no assurance that AFFO presented by us is comparable to the adjusted or modified FFO of
other REITs.

Total AFFO for the year ended December 31, 2018 was as follows:
Funds from operations $ (744,892)
Amortization of above market leases (1) 214,415
Amortization of below market leases (2) (78,045)
Straight line rent (3) (207,432)
Capital expenditures, net of escrow reimbursements (4) (878,157)
Increase in fair value of interest rate cap (5) (43,361)
Amortization of loan issuance costs (6) 166,600
Share-based compensation (7) 790,340
Adjusted funds from operations (AFFO) $ (780,532)
(1) Adjustment to FFO resulting from non-cash amortization of intangible assets recorded as part of the purchase of
the Franklin Square Property and Hanover Square North.
(2) Adjustment to FFO resulting from non-cash amortization of intangible liabilities recorded as part of the purchase
of the Franklin Square Property and Hanover Square North.
(3) Adjustment to FFO resulting from non-cash revenues recognized as a result of applying straight line revenue
recognition for the Franklin Square Property and Hanover Square North.
(4) Adjustment to FFO for capital expenditures made during the year ended December 31, 2018 for the Franklin Square
Property, Hanover Square North and Greensboro Hampton Inn that will not be reimbursed by property escrow
accounts. During the year ended December 31, 2018, the Company paid $1,547,391 in costs for leasing
commissions, tenant inducements and tenant improvements at the Franklin Square Property and Hanover Square
North and interior and exterior renovations and advance deposits for furniture and fixtures at the Greensboro
Hampton Inn. During 2018, the Company received $604,290 in funds from property capital reserves held by the
Greensboro Hampton Inn mortgage holder and $64,944 from the Franklin Square Property mortgage holder.
(5) Adjustment to FFO resulting from non-cash revenues recognized as a result of increase in fair value of interest rate
cap.
(6) Adjustment to FFO for amortization of non-cash expenses recognized as a result of amortizing loan issuance costs
over the terms of the respective mortgages.
(7) Adjustment to FFO resulting from non-cash expenses recorded for share based compensation.
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning
and managing value-add commercial real estate in the Southeast region of the U.S. The Company’s strategy is to
focus on value-add and opportunistic commercial real estate which is expected to provide an attractive balance of
risk and returns. The company uses a diverse approach and focuses on four property types Flex/Industrial,
Multifamily, Neighborhood Shopping Centers and Limited Service Hotels. Medalist utilizes a rigorous and consistent
process for sourcing and conducting due diligence of acquisitions. The Company seeks to maximize operating
performance of current properties by utilizing a hands-on approach to asset management while monitoring market
for acquisition opportunities and disposal of properties as considered appropriate. For more information on
Medalist, please visit the Company website at https://www.medalistreit.com.
Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the
Company’ s present expectations, but these statements are not guaranteed to occur. Furthermore, the Company
disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying
assumptions or factors, of new information, data or methods, future events or other changes. Investors should not
place undue reliance upon forward-looking statements. For further discussion of the factors that could affect
outcomes, please refer to the risk factors set forth in the Company’s Registration Statement on Form S-11 filed by
the Company with the U.S. Securities and Exchange Commission (the “SEC”) on March 11, 2019. We claim the safe
harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of 1995.

Investor Relations Contact:
The Equity Group
Jeremy Hellman, Senior Associate
(212) 836-9626 /